HomeMy WebLinkAboutMINUTES - 10132015 - FPD D.5RECOMMENDATION(S):
ACCEPT written acknowledgment by the County Administrator (Chief Executive Officer) that he understands the
current and future costs of the Retirement benefit changes for Safety employees represented by United Chief
Officers' Association, as determined by the County’s actuary in Actuarial Reports dated September 8, 2015.
FISCAL IMPACT:
As shown in the valuation, the combined result of the retirement changes described herein for Safety employees in the
United Chief Officers' Association would result in a savings of 4.2% of annual pensionable pay with the first hire in
year one. Future valuation results will change with demographic and cost updates. These projections do accurately
measure the direction of the proposed plan change costs. Over time, as more employees are hired into the new
PEPRA tier at a 2% COLA, the savings will become more significant. It should be noted that the figures presented in
this report represent the savings associated only with the negotiation of a 2% COLA. The savings described in the
valuation report do not include the savings resulting from the implementation of PEPRA.
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 10/13/2015 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, Director
Candace Andersen,
Director
Karen Mitchoff, Director
Federal D. Glover, Director
ABSENT:Mary N. Piepho,
Director
Contact: Lisa Driscoll, County Finance
Director, 335-1023
I hereby certify that this is a true and correct copy of an action taken and entered on the
minutes of the Board of Supervisors on the date shown.
ATTESTED: October 13, 2015
David Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc: Ann Elliott, Employee Benefits Manager, Harjit S. Nahal, Assistant County Auditor
D.5
To:Board of Supervisors
From:David Twa, County Administrator
Date:October 13, 2015
Contra
Costa
County
Subject:Government Code 7507 - Chief Executive Acknowledgement of Future Costs of Benefits - United Chief Officers'
Association
BACKGROUND:
At its meetings of September 15, 2015, the CCC Fire District Board of Directors accepted an actuarial valuation
of future annual costs of negotiated and proposed changes to Other Post Employment Benefits, as provided by the
County's actuary in a letter dated September 8, 2015. The Board was informed that Government Code, Section
7507 requires with regard to local legislative boards, that the future costs of changes in retirement benefits or other
post employment benefits as determined by the actuary, shall be made public at a public meeting at least two
weeks prior to the adoption of any changes in public retirement plan benefits or other post employment benefits.
The September 8, 2015 report fulfilled that requirement.
Government Code, Section 7507 also requires that if the future costs (or savings) of the changes exceed one-half
of 1 percent of the future annual costs of the existing benefits for the body, an actuary shall be present to provide
information as needed at the public meeting at which the adoption of a benefit change shall be considered. An
actuary will be present at the meeting of October 13, 2015.
And finally, Section 7507 requires that upon the adoption of any benefit change to which the section applies, the
person with responsibilities of a chief executive officer in an entity providing the benefit, however that person is
denominated, shall acknowledge in writing that he or she understands the current and future cost of the benefit as
determined by the actuary.
As the County Administrator (chief executive officer) and by approving this Board Order, I acknowledge in
writing that I understand the current and future cost of the benefit changes presented to you today, as determined
by the actuary and contained in the September 8, 2015 letter from Buck Consultants (County's actuary).
CONSEQUENCE OF NEGATIVE ACTION:
Delayed implementation of the COLA reduction, resulting in loss of savings.
CHILDREN'S IMPACT STATEMENT:
ATTACHMENTS
7507 Report for UCOA dated September 8, 2015
Tax Exempt Lease Purchase
SALES ORGANIZATION: Golden State - Ryan Contact information:
LESSEE: Contra Costa County October 6, 2015
TYPE OF EQUIPMENT:
Four (4) Pierce Velocity pumpers,
one (1) Velocity HDR and one (1)
Velocity Tractor Drawn Aerial
Kim Simon
EQUIPMENT COST:
$4,128,591.99 (including sales tax
and discounts)
Locator: B3-B230-05-07
CUSTOMER DOWNPAYMENT: $0.00 155 East Broad St
TRADE-IN: $0.00 Columbus, OH 43215
DELIVERY TIME: Std delivery Ph: (800) 820-9041, ext. 1
PAYMENT MODE: Annual In Advance M: (614)-670-3994
FIRST PAYMENT DUE DATE: Upon contract signing with Pierce Fax:(800)-678-0602
LEASE COMMENCEMENT DATE: Upon contract signing with Pierce Kim.simon@pnc.com
Term 10 years
Number of Payments 10 annual
Payment Amount $459,065.26
NOTE: All lease documents must be fully executed within 14 days of the date of this proposal. Failure to receive completed documents may alter the final payment schedule due to
changes in rates and/or discounts.
PERFORMANCE BOND: To utilize the prepay program, a performance bond is required. Said performance bond shall be paid for directly to Pierce manufacturing or financed by PNC
Equipment Finance as part of the transaction
TYPE OF FINANCING: Tax-exempt Lease Purchase Agreement with a $1.00 buy out option at end of lease term. Said agreement shall be a net lease arrangement whereby lessee is
responsible for all costs of operation, maintenance, insurance, and taxes.
BANK QUALIFICATION: This proposal assumes that the lessee will not be issuing more than $10 million in tax-exempt debt this calendar year. Furthermore, it is assumed that the lessee
will designate this issue as a qualified tax-exempt obligation per the tax act of 1986.
LEGAL TITLE: Legal title to the equipment during the lease term shall vest in the lessee, with PNC Equipment Finance perfecting a first security interest
AUTHORIZED SIGNORS: The lessee's governing board shall provide PNC Equipment Finance with its resolution or ordinance authorizing this agreement and shall designate the
individual(s) to execute all necessary documents used therein.
LEGAL OPINION: The lessee's counsel shall furnish PNC Equipment Finance with an opinion covering this transaction and the documents used herein. This opinion shall be in a form and
substance satisfactory to PNC Equipment Finance.
VOLUNTEER FIRE DEPARTMENTS: If Lessee is a Volunteer Fire Department, a public hearing under the requirements of Section 147(f) of the Internal Revenue Code of 1986 shall be
conducted to authorize this transaction. It is recommended that a notice of the public hearing be published 10 to 14 days in advance of the public hearing.
This proposal will be valid for fourteen (14) days from the above date and is subject to final credit approval by PNC Equipment Finance and approval of the lease documents in PNC
Equipment Finance's sole discretion. To render a credit decision, lessee shall provide PNC Equipment Finance with their most recent two years' audited financial statements, copy of their
most recent interim financial statement, and current budget.
Accepted by:____________________________________ Proposal submitted by_____________________